Harley Davidson Inc., the iconic motorcycle company, will remain in Milwaukee following the unions' ratification of a seven-year contract Monday after the company threatened to take their business to another state.
The contract will enforce a seven-year wage freeze as of 2012. ""We're gonna be tied up for nine years,"" said Scott Parr, a representative of the International Association of Machinists and Aerospace Workers.
Harley-Davidson released a statement confirming the two Milwaukee-area unions, including the IAM, accepted the contract, but they are still waiting on the decision from the Tomahawk factory employees.
""Today's outcome in Milwaukee is a significant step toward creating the competitive, flexible operations that are essential to the company's future,"" the company said in a statement.
Parr said the IAM ultimately ratified the contract because they took the company's threat of moving seriously, but the terms were not what they hoped for. ""The membership did what they had to do to keep the jobs here in Milwaukee, but none of them were happy with this contract or what we needed to do,"" he said.
Gubernatorial hopefuls Milwaukee Mayor Tom Barrett and Milwaukee County Executive Scott Walker both celebrated the compromise.
""Harley-Davidson has played an important role in Milwaukee's history and I'm confident the company will continue to play a significant role in our future as well,"" Barrett said.
Walker said this decision is a good sign for the state and local economy. ""We want them to stay for another 107 years—and this vote is a good sign that they will,"" he said.
Gov. Jim Doyle also praised the decision but noted its drawbacks.
""Today's vote by Harley employees is good news, but this was a tough decision for Harley and for hundreds of workers."" Doyle said.
Parr said although it was necessary to keep Harley and its employees in Milwaukee, this situation is representative of a troubling competition between states to attract industry.
""What these states are doing is using stimulus money, calling it ‘job creation,' and in my opinion it's job theft from another state,"" Parr said.
